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EUR/USD Signal - US Fed Comments - 16 Aug 2016

Signal details
Entry Price: 
1.1285
Close Price: 
1.1278
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
ITM
How we trade
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The EUR/USD has moved sharply higher today in the wake of better than expected German ZEW institute data on economic activity. The sentiment indicator came out better than expected and catapulted the pair to test the 1.1300 area during the European session. Following the release of US inflation data, we have seen some comments from Fed's member Bill Dudley who indicated that interest rates in the US could go higher.

With the September meeting back in play, the EUR/USD sold off rather briskly to trade around 1.1275 at present. We will be buying buying daily puts at 1.1285 due to a number of technical factors. In our view prices are headed towards the 1.1230-35 area where the pair is likely to exhibit support from intraday buyers later tonight or tomorrow morning.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.